Four Paths To Real Estate Profits With ETFs (XHB, ITB, PKB, SRS, DRV, TOL, PHM, IYR, RWX, REZ, REM, AGZ)
Ron Rowland: I’ve spent my investment career following sector momentum, and it’s worked out pretty well. ETFs make it even better. Right now my indicators show a lot of short-term strength in real estate. Personally, I find it hard to believe the housing market has truly bottomed. My colleague Read more…
“The latest offering from State Street, SPDR KBW Mortgage Finance ETF (KME), began trading today. The new ETF is designed to track a Keefe, Bruyette & Woods (KBW) index of the 24 largest mortgage finance companies listed on U.S. exchanges. KME is the first new equity ETF in the SPDR family since last July, when the SPDR international sector ETFs were launched. The five launches earlier this year were all bond ETFs.”
“Like the rest of the financial services sector, the performance of the underlying index had a rough time this past year. At the end of the first quarter (March 31, 2009), the index was down -9.7% year-to-date and off -62.5% for the past twelve months.”
State Street Launches SPDR(R) KBW Mortgage Finance ETF First Exchange Traded Fund to offer 100 percent Exposure to the Mortgage Finance Industry
BOSTON, Apr 30, 2009 (BUSINESS WIRE) — State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced that the SPDR(R) KBW Mortgage Finance ETF (Symbol: KME) began trading on the NYSE Arca on April 30, 2009. It is the first exchange traded fund (ETF) to provide US investors with precise access to equities in the mortgage finance industry.
The SPDR KBW Mortgage Finance ETF seeks to track the total return performance of the KBW Mortgage Finance Index, a modified market-capitalization weighted index of the stocks listed on US stock markets comprising of pure mortgage players, mortgage processors, title insurers, homebuilders, and banks and thrifts where mortgage loans dominate the loan book.
Created and maintained by Keefe, Bruyette & Woods, Inc., a full-service investment bank specializing in the financial services industry, the KBW Mortgage Finance Index included 24 stocks as of March 31, 2009. The Fund’s expense ratio is 0.35 percent.
“As the first ETF to invest in the mortgage finance industry, the SPDR KBW Mortgage Finance ETF provides investors with an unmatched opportunity to gain diversified, cost-effective exposure to the real estate finance industry,” said Anthony Rochte, senior managing director at State Street Global Advisors. “The introduction of KME strengthens our suite of SPDR KBW ETFs, which are designed to help investors express a tactical view on industries within the financial services sector.” The SPDR KBW family of exchange traded funds include: SPDR KBW Bank ETF (Symbol: KBE), SPDR KBW Capital Markets ETF (Symbol: KCE), SPDR KBW Insurance ETF (Symbol: KIE), SPDR KBW Regional Banking ETF (Symbol: KRE), and SPDR KBW Mortgage Finance ETF (Symbol: KME). Assets under management in these innovative financial services sector ETFs totaled about $1.2 billion as of March 31, 2009.
Full Story: http://www.cnbc.com/id/30497657/site/14081545